creditworthiness assessment

Creditworthiness assessment is a process used by lenders to evaluate whether a person or business is likely to repay borrowed money responsibly. It involves reviewing financial information such as income, debts, and credit history to gauge the ability and likelihood of fulfilling loan obligations. This helps lenders decide if they should approve a loan and under what terms. A strong creditworthiness score indicates reliable repayment potential, while a lower score suggests higher risk. The goal is to match borrowers with suitable loans, ensuring both parties understand the risks involved.